Instead of concentrating on bigger f1.2/1.4 lenses, they could just make sure that OSS is installed in most of the new ones including the new Zeiss lenses. Stabilization is worth about 2 f-stops, anyhow.

Well the things OSS don't help with are DoF and shutter speed which is still necessary for fairly common objects of photography (e.g. active children). But yes, for anything static OSS is just fine.

IF you cant get children moving with an 1.8 lens cause of speed, then you wont get them with a 1.2 too. Remember that is a stop of light, and not even that, probably it is that a 60, 70 % of a stop of light cause of the sensor problem. So with a 60%, 70%, you really think you will get those kits moving static? It is not enough. Yes, everything counts, but if you got movement at 1.8, you are still are going to get it at 1.2

Shutter speed comes down, not to f-stop but, to t-stop. So, what might seem like a 1-stop advantage going from f/1.2 to f/1.8, might shrink to 1/2-2/3 stop. That is practically inconsequential considering the baggage: cost, size and weight.

Then, one must consider whether a larger aperture is worth it, optically. I have tried several large aperture lenses and very few stand out good wide open. Most lack contrast and sharpness. And especially with larger sensors and shallower DOF, you're talking additional challenges with more accurate focusing (less of an issue with manual focus, however).

Under very low light conditions, this difference is actually even less consequential. If you gain from 1/15s to 1/25s, there's not much you're accomplishing. Worth 3-4x the money?

There is yet another issue: diffraction. Lenses have a small range over which they are optically at their best. On a lens with f/2.8 max aperture, you will typically see f/5.6 being optimal. On f/1.8-f/2 lens, around f/4. In other words, couple of stops. If I were a sucker for maximum sharpness and optimal performance, especially having paid 3x-4x for a 1-stop theoretical advantage, would I be okay with a lens that has optics optimized only for large aperture, especially for a wide angle?

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